You are here
Another bullion flash crash is testing traders
But not so much to cause them, or financial journalists, to pose critical questions to anyone.
* * *
Another Bullion Flash Crash Is Testing Traders
By Luzi-Ann Javier and Susanne Barton
Friday, July 7, 2017
After-hours surges and plunges that have whipsawed gold and silver prices over the past two weeks are unnerving traders. ...
Such moves, which occurred at times when liquidity in these markets is generally lowest, are giving traders an additional headache at a time when investor sentiment is already turning bearish. Hedge funds are retreating, while exchange-traded fund investors are pulling out of gold, pushing the precious metal to the lowest in almost four months.
"All fundamental factors aside, it does tremendous technical damage to the market," Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said by telephone. "There should be some effort to study this and come to some solution that will make for a more orderly trading pattern. This type of activity is not good for a fair playing field."
... Dispatch continues below ...
We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth
With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong.
Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed.
Crucial guides to storage in Singapore and Switzerland can be read here:
GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals.
Email the GoldCore team at email@example.com or call our trading desk:
UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010.
Visit us at: http://www.goldcore.com
Gold has lost about $47 since the session before that 1.8 million ounce-trade that many blamed on a "fat-finger" or erroneous trade. While O'Neill believes that trade may have been done in error, he said the precious metal struggled to bounce back from its low on June 26 because the transaction pushed the price below the 200-day moving average, triggering automated sell orders set by algorithmic traders, thereby sustaining the slump. ...
"These so-called 'flash crashes' that occur periodically are frustrating to traders caught on the wrong side of the downdraft," Jim Wyckoff, senior analyst at Kitco Metals Inc., a research company in Montreal, said in report. "It also makes many market watchers question the viability of futures markets, which are supposed to create more liquidity and better price discovery."
... For the remainder of the report:
Join GATA here:
New Orleans Investment Conference
Wednesday-Saturday, October 25-28, 2017
Hilton New Orleans Riverside Hotel, New Orleans, Louisiana
Mines and Money London
Business Design Centre
London, England, United Kingdom
Monday-Thursday, November 27-30, 2017
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: